Vote to leave could quash apprenticeship levy plan

Government plans to introduce an apprenticeship levy could be scrapped if the votes to leave the EU, Boles says.

Skills Minister Nick Boles has suggested that the incoming apprenticeship levy could be dropped if the UK votes to leave the EU.

The apprenticeship levy, which was introduced in the July 2015 budget, was designed to generate funding for three million apprenticeships. It was faced opposition from business groups including the Confederation of British Industry.

The levy plans are set at 0.5% of an employer’s pay bill, and will only be payable by businesses with a pay bill of more than £3M – around 2% of employers.

Nick Boles spoke out on the issue during a recent event in Westminster, organised by Policy Exchange, where he raised the issue about prospects for the levy during a speech on the European Union and possible outcomes if the British public votes to leave.

He suggested that if the UK opts for Brexit later this month, his own programme could be dropped by Chancellor George Osborne, due to the economic shock that is predicted to follow the decision to leave.

Mr Boles said: “Do you think the Chancellor will feel it is prudent to introduce a new payroll tax in the middle of a recession, when business confidence has been knocked by a decision to leave the single market and unemployment is rising?”

Although the levy is already in legislation, Boles maintained that the programme could still be dropped.

“Like all public services, funding for apprenticeships, and other support for young people, depends on the economy being strong and businesses being profitable,” Boles said.

 

If you would like to read more articles like this then please click here

 

The post Vote to leave could quash apprenticeship levy plan appeared first on UK Construction Online.